Burgundy, a multilateral trading facility for Nordic equities, will offer its members new functionality yet to be seen in the region, according to CEO Olof Neiglick.
Similar to pan-European MTF Turquoise, Burgundy plans to offer an integrated lit and dark order book. “I am personally excited about introducing this new dark book facility for the Nordic region because we haven’t had this functionality here yet,” Neiglick told theTRADEnews.com. “The dark order type is designed to compete with telephone-based trading for price improvement and reduction of market impact.”
Neiglick also outlined plans to connect to a central counterparty (CCP) around the time of Burgundy’s launch in summer 2009. However, exchange group Nasdaq OMX, who operate the domestic Nordic markets, has also outlined its plans to introduce a CCP to the region in January 2009 after taking a 22% stake in the European Multilateral Clearing Facility (EMCF).
“We estimate that introducing a CCP will take six to twelve months,” said Neiglick. “We are evaluating which CCP to connect to but it is unlikely that members will be ready to implement a CCP before next summer.”
The Burgundy chief added that execution fees on the platform will favour liquidity providers, but whether this is through maker-taker pricing or market-maker discounts is yet to be determined. Market data and connectivity will also be free to Burgundy’s members.